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Hope on gas production rises as Shell announces FID on project

By Stanley Opara
24 December 2018   |   4:17 am
A plan by the Federal Government to boost domestic gas production for increased power generation and industrialization...

Bonga oil field. PHOTO: SHELL

• Targets 300m cubic feet for domestic market
A plan by the Federal Government to boost domestic gas production for increased power generation and industrialization may materialize soon as the Shell Petroleum Development Company of Nigeria Limited (SPDC) announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State.

At peak production, the project is expected to deliver 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network.

The Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, who disclosed the development yesterday noted that the project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth.

“This is good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints,” he was quoted to have said in a statement.

“The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the seven critical gas projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.”

Okunbor added that the SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.

The SPDC’s Director and General Manager (Projects), Mr. Toyin Olagunju, said the Assa North project would be a significant contribution to the GDP growth in Imo State and across Nigeria as the gas produced would be utilised in-country across diverse industries, while providing economic opportunities for local communities.

Just three weeks ago, the SPDC JV signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43 million standard cubic feet of gas per day to support the 140MW Aba Integrated Power plant at Ossisioma in Abia State.

By the agreement, SPDC will supply gas from its joint venture gas plant in Imo River traversing Abia and Rivers states to the power producer, GPAL, via a gas pipeline network which is already installed.

SPDC is the operator of a joint venture involving the NNPC, which holds 55 percent; Shell 30 percent; Total Exploration and Production Nigeria Limited (TEPNG)10 percent; and Nigerian Agip Oil Company Limited (NAOC), five per cent.

Recently, the Bonga vessel of the Shell Nigeria Exploration and Production Company (SNEPCo) produced over 800 million barrels of crude oil, confirming the company as a pacesetter in offshore oil and gas production in the Gulf of Guinea.

This is coming after 13 years of deep-water exploration, SNEPCo said in a statement.

In its review of the performance of the Bonga Floating Production, Storage, and Offloading (FPSO) vessel for 2018, SNEPCo’s Managing Director, Bayo Ojulari, expressed satisfaction with the consistent availability and optimal performance of the vessel, which began operation at the Bonga field in OML 118 in 2005 under a production sharing contract with the NNPC.

“We are relentless in our pursuit of excellence on all fronts, and this we have consistently demonstrated with the management of Bonga to the satisfaction of our government and co-venture partners,” Ojulari was quoted to have said.

“We leverage the Shell group’s global expertise in technology and new advancements in the industry to continue to unlock Bonga’s huge potential. One such example was the completion and inauguration of the Bonga North West Cross Over module in 2014, a first in the history of Shell which launched the beginning of a new phase delivering the reservoirs proven volumes and maintaining production of the FPSO at full capacity,” he added.